T. Rowe Price
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Semiannual Report
Spectrum Funds
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June 30, 2000
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REPORT HIGHLIGHTS
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SPECTRUM FUNDS
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* Stocks around the world generally declined in the first half, after
tremendous gains in 1999. Bonds posted modest returns, led by long-term
Treasuries and emerging market debt.
* Spectrum Growth delivered solid relative performance in the first half and
a strong result for the 12 months ended June 30.
* Spectrum Income's returns were modest in both periods and trailed its
benchmarks.
* Spectrum International held up better than its benchmarks in the first half
and produced an outstanding 12-month gain.
* Tame inflation, moderating U.S. growth, and strength in overseas economies
bodes well for stocks and bonds through the remainder of the year.
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UPDATES AVAILABLE
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For updates on T. Rowe Price funds following the end of each calendar
quarter, please see our Web site at www.troweprice.com.
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FELLOW SHAREHOLDERS
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Stocks were extremely volatile -- and generally lower -- around the globe
in the first half of 2000. Bonds produced modest total returns but outperformed
most stocks. High-priced technology and other New Economy stocks started the
year with tremendous momentum after soaring in 1999, then plunged to lower
levels in early spring. Technology stocks and some other sectors rebounded
sharply in June, but most major averages ended the period lower. Globally,
small-caps, mid-caps, and natural resources stocks rose in the first half, while
emerging market bonds and long-term U.S. Treasuries were also strong.
MARKET ENVIRONMENT
------------------
***********************************************************************
Bar chart with four pairs of bars, representing 6- and 12-month
returns for the following indices for periods ended 6/30/00:
S&P 500 Stock Index: -0.43%, 7.24%; Russell 2000 Index:
3.04%, 14.32%; MSCI EAFE Index, -3.95%, 17.44%;
MSCI Emerging Markets Free Index, -7.99%, 9.47%
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<PAGE>
The tech-heavy Nasdaq Composite peaked above t he 5000 level on March 10
before plummeting 37% in the ensuing two months. A steady and increasingly
aggressive rate hike program by the Federal Reserve -- combined with sky-high
valuations and a continued lack of profitability among most of the dot-coms --
finally took its toll on the once invincible Nasdaq. The progress of the U.S.
Justice Department's antitrust case against Microsoft also sapped investor
confidence. The Fed raised its key federal funds target rate three times for a
total of one percentage point in the first half, capped by a half-point move on
May 16. At that point, it seemed as if there might be no end in sight to Fed
tightening since the U.S. economy, having grown 5.5% in the first quarter, was
showing no sign of slowing down. During the Nasdaq correction, value stocks --
especially consumer and industrial cyclicals whose earnings are closely tied to
economic growth -- as well as steady growth stocks such as pharmaceuticals fared
well.
***********************************************************************
Chart showing 30-year Treasury Bond, 5-year Treasury Note,
90-Day Treasury Bill for 12 months ended 6/30/00.
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However, the economy did indeed show signs of cooling off by late May.
Suddenly, the likelihood of further aggressive rate hikes by the Fed began to
fade. With the earnings of cyclical companies now vulnerable to disappointment,
investors reversed course again and rushed back into many of the high-tech
leaders of 1999, while value stocks slid. Many networking and semiconductor
stocks ended the period near their old highs. With a few strong exceptions,
however, most Internet stocks did not recover. Mid-capitalization stocks were
the best performers in the U.S., rising 8.97% in the period as measured by the
Standard & Poor's MidCap Index. The Russell 2000 Index of smaller companies rose
3.04% in the half, as shown in the bar chart. The Nasdaq fell 2.54%.
Markets overseas also experienced a severe correction and sector rotation
during the period, with foreign New Economy stocks rising, falling, and rising
again along with Nasdaq. U.S. market volatility and rising rates had the largest
impact on the Pacific ex-Japan and Latin America. Stocks in Japan -- so strong
last yearNfell sharply on weakness in the technology, automotive, and banking
sectors. Domestic consumer spending remained weak, and foreign investors were
also heavy sellers of Japanese stocks. Europe performed relatively well, aided
by strength in Old Economy sectors such as energy, pharmaceuticals, and food,
and in select high-tech stocks. Most foreign stock markets ended the period
lower, and weakness in major currencies increased losses for U.S. investors.
Emerging market bonds, however, were strong, bolstered by the improving global
economy and higher commodity prices, both of which aided the creditworthiness of
issuing companies and nations. In the first half, Mexico's debt reached
investment-grade status.
<PAGE>
The Fed left rates unchanged at 6.5% at its late June meeting, and sounded
a relatively conciliatory note about its future stance. But during the first
half, the bond markets had more than just rate hikes to concern themselves with.
Strong economic growth has helped generate huge federal government surpluses, to
the extent that the U.S. sharply curtailed its borrowing and initiated a buyback
program for 30-year Treasuries. This caused concern about a "shortage" of
long-term Treasury bonds, and as a result 30-year Treasuries rallied strongly
early in the first half in the face of aggressive Fed tightening. Corporate and
mortgage bonds did not fare nearly as well, and high-yield bonds, in particular,
remained weak. With long-term Treasury yields falling and short- and
intermediate-term yields rising, the Treasury yield curve inverted -- meaning
long-term yields fell below those of short- and intermediate-term bonds. (The
yield curve is a line charting interest rates on bonds of various maturities.)
Later in the period, with the release of more benign economic data, yields
declined across the board.
SPECTRUM GROWTH FUND
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PERFORMANCE COMPARISON
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Periods Ended 6/30/00 6 Months 12 Months
--------------------- -------- ---------
Spectrum Growth Fund 3.61% 15.08%
Lipper Multi-Cap Core
Fund Index 4.02 13.54
S&P 500 Stock Index -0.43 7.24
In a challenging environment for stocks, the Spectrum Growth Fund's
performance in the last six months was modest in absolute terms but solid
compared with its benchmarks, as shown in the table. The fund's 3.61% gain was
comparable to that of the Lipper Multi-Cap Core Fund Index but well ahead of the
Standard & Poor's 500 Stock Index, which fell 0.43%. For the past year, the
strong 15.08% advance exceeded both the S&P 500 and our Lipper category. Returns
were driven in both periods by outstanding performance from small- and mid-cap
growth stocks, represented by our investment in the New Horizons Fund. Large-cap
growth stocks (Growth Stock and Blue Chip Growth Funds) also delivered solid
gains. While the International Stock Fund was our weakest underlying fund of the
past six months, it was the second-strongest over the past year.
As we noted in our last report, it's encouraging to see out-of-favor
sectors like small-caps and international stocks come back to the fore. Value
stocks also attempted a comeback in the first half, rallying as high-flying tech
stocks retreated. However, indications of a slowing economy pulled the rug out
from under the sector, and as a result our value funds were among our worst
performers in both periods. One exception was the New Era Fund, to which we have
a small allocation. Rising oil and gas prices boosted the fund's heavy
concentration in energy stocks.
<PAGE>
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Pie chart based on net assets as of 6/30/00,
with the following segments: Large-Cap Stocks, 41%;
Mid-Cap Stocks, 18%; Small-Cap Stocks, 7%;
International stocks, 30%; Other and Reserves, 4%
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During the period, we increased our target allocation to the New Horizons
Fund to 23% (near the top of our range), and reduced the target allocation to
our main value-oriented funds, the Growth & Income and Equity Income Funds, by
one percentage point each. Given their high growth rates, small-caps still look
inexpensive relative both to historical levels and to large-caps. As a result,
we are emphasizing small- and mid-cap growth stocks over large-caps, and within
the latter group we are tilted toward large-cap value. Target allocations to the
Equity Income and Growth & Income Funds are at 13% each, while the allocations
to Growth Stock and Blue Chip Growth are currently at 10% and 9.5%,
respectively, as shown in the table on page 13. Despite the fact that
high-growth stocks have again taken the lead after correcting this spring, we
remain committed to emphasizing large-cap value stocks over large-cap growth.
Concern about economically sensitive earnings may continue to weigh on the
group, but valuations at current levels provide an attractive opportunity for
capital appreciation in the years ahead. In addition, many of the leading
technology stocks -- despite excellent fundamentals -- have already approached
their former highs, leaving open the question of how much further their
valuations can be stretched.
We also continued to tilt toward international stocks at the expense of
U.S. shares and are comfortable with the maximum allocation (25%) to the
International Stock Fund. Select foreign markets offer opportunities similar to
those available in the U.S. in the mid-1990s, where consolidation, enhanced
productivity and profitability, and a focus on shareholder interests helped
create a positive backdrop for stocks. The economic cycle is also at a different
point overseas, where many countries are in the early stages of recovery after
poor overall performance in the late '90s.
SPECTRUM INCOME FUND
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PERFORMANCE COMPARISON
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Periods Ended 6/30/00 6 Months 12 Months
--------------------- -------- ---------
Spectrum Income Fund 2.10% 2.11%
Lipper General Bond
Funds Average 2.25 3.72
Salomon Smith Barney Broad
Investment Grade Index 3.92 4.51
<PAGE>
Bond market performance was better in the first half than in 1999. Total
returns were modest, but superior to the major equity averages. The Spectrum
Income Fund's modest 2.10% gain, while in line with the Lipper General Bond
Funds Average, was behind the broad-based bond market index. Performance over
the past year was even more disappointing. Our modest exposure to stocks through
the Equity Income Fund, while an important component of our strong 8.67% average
annual return since inception 10 years ago, hampered performance in the 6- and
12-month periods as value-oriented stocks were generally weak. The International
Bond Fund also detracted from performance, hurt by the decline of the euro. (The
Salomon index has no equity component and no exposure to international bonds
denominated in foreign currencies.) Going forward, we remain convinced that
diversification into dividend-paying stocks and international bonds will enhance
returns. In fact, our small position in the Emerging Markets Bond Fund was our
second-best contributor over six months and the best over the past year due to
the improving global economy. The U.S. Treasury Long-Term Fund was the best
contributor in the first half.
Though both the GNMA Fund and the New Income Fund (medium-quality corporate
bonds) posted respectable results in the first half, their returns were
lackluster over the past year. Much of the enthusiasm in the Treasury market
came at the expense of mortgage-backed bonds, despite their increasing yield
advantage. The High Yield Fund's results were flat during both periods, as
attractive dividend income was offset by the impact of stock market volatility
and a rising default rate.
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Pie chart, based on net assets as of 6/30/00,
with the following segments: High-grade bonds, 49%;
High-yield bonds, 17%; International bonds, 16%;
Stocks, 13%; money markets, 5%]
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We reduced the duration of the portfolio early this year (as reflected in
the table on page 12) by trimming our allocation to long-term Treasuries.
(Duration measures a bond fund's sensitivity to interest rates. For example, a
fund with a duration of five years will rise about 5% in price in response to a
one-percentage-point decline in rates and fall 5% in response to a
one-percentage-point increase in rates.) This had a modestly negative effect on
returns. With the economy and stock market so strong in the first two months of
the year, and the Federal Reserve so committed to dampening both, we felt it
prudent to reduce interest rate risk. Clearly, however, the continuing,
larger-than-expected federal budget surpluses and the Treasury debt buyback are
changing the fixed-income landscape in fundamental ways.
<PAGE>
The target allocation to mortgage-backed bonds was increased early in the
first half, to 18%, to take advantage of the attractive yields and high credit
quality available in the sector. However, at the end of June, we reduced the
GNMA Fund allocation in favor of boosting exposure to the New Income and High
Yield Funds. The yield advantages (or "credit spreads") in the corporate sector
and in high-yield, particularly, had widened to historically extreme levels.
Similarly, attractive valuations led us to increase our allocation to the Equity
Income Fund in February, to 12%, though that remains near the minimum allocation
of 10%, as shown in the table on page 13. The allocation to the International
Bond Fund was increased in May as the euro appeared undervalued. Since hitting
an all-time low in early May, the euro has firmed.
SPECTRUM INTERNATIONAL FUND
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PERFORMANCE COMPARISON
----------------------
Periods Ended 6/30/00 6 Months 12 Months
--------------------- -------- ---------
Spectrum International Fund -2.59% 26.98%
Lipper International
Funds Average -4.55 24.48
Combined Index Benchmark* -3.73 15.83
* 90% MSCI EAFE/10% J.P. Morgan Non-U.S.
Dollar Government Bond Index.
The Spectrum International Fund fell 2.59% in the first half but held up
better than both of its benchmarks, as shown in the table, in a generally
negative period for international assets. Despite foreign markets' correction
after a robust 1999, the fund posted a strong 12-month gain of 26.98% that was
also ahead of both the Lipper International Funds Average and our unmanaged
combined index benchmark. The purpose of the combination benchmark, of course,
is to reflect the fund's allocation to foreign bonds. At present, however, we
have only a 5% target allocation to the Emerging Markets Bond Fund, and our
allocation to the International Bond Fund remained at zero throughout the past
year. This aided results as emerging market bonds performed strongly based on
improved global growth, while high-quality foreign bonds were hurt by currency
weakness in developed countries, particularly those in the euro zone. The
Emerging Markets Bond Fund gained nearly 8% in the period.
Performance also benefited from our 3% allocation to the International
Discovery Fund, which soared last year and early this year on tremendous
enthusiasm for selected foreign small- and mid-cap stocks. This sector was hit
hard, however, by the spring correction, as many of the most promising emerging
growth companies overseas are technology- or Internet-related. The late rebound
in these sectors helped International Discovery close the first half with a gain
of more than 8%, and to more than double over the past 12 months. Two of our
other top performers from 1999, however, were our worst contributors in the
first half. The Japan Fund fell more than 11%, and the New Asia Fund fell nearly
7%. As was the case with foreign bonds, stocks in the emerging markets fared
better than those in most developed markets. The Emerging Markets Stock Fund
(4.3% allocation), our second-best performer over the past year, fell just
modestly in the first half, while the Latin America Fund (1.5% allocation)
posted a small gain. The European Stock Fund (29% allocation) was also a
relatively good performer in the first half.
<PAGE>
Over the last six months we lowered our target allocation to the
International Stock Fund (48% allocation) and the European Stock Fund, though at
29% our exposure to the latter is still significantly higher than a year ago.
Proceeds were allocated to the Latin America and New Asia Funds to take
advantage of economic growth prospects in these regions being fueled by global
demand growth and higher commodity prices. The fund's net geographic
diversification, shown in the nearby chart, changed partly as a result of our
new allocations, partly due to changes in market value, and partly because of
shifts in the underlying portfolio of the International Stock Fund, still our
largest component. The fund's net exposure to Japan declined two percentage
points, while assets in Europe dropped one percentage point. We continue to view
the fundamental backdrop for equity investment in Europe as excellent, however.
Our net assets in Latin American securities rose two percentage points. The
table on page 13 lists target allocations for each underlying fund.
***********************************************************************
Pie chart, based on net assets as of 6/30/00,
with the following segments: Europe, 60%; Japan, 16%;
Latin America, 8%, Far East, 6%; Other and Reserves, 10%]
***********************************************************************
As we indicated in our last report, we had expected the Japanese market to
have difficulty sustaining its powerful 1999 rally, which was led by technology
stocks. Japan benefited last year from a huge inflow of foreign capital as
international portfolio managers reallocated investments to Japan after largely
avoiding it for many years. These inflows were unlikely to continue at that
pace, and in fact, foreigners were net sellers of Japanese stocks in the first
half. While we do think Japan has begun to turn an important corner, the process
of restructuring and reform will take years, and the ruling party that presided
over a decade of stagnation is still in power.
In addition, corporate restructuring will inevitably drive up unemployment
and thereby reduce domestic demand, while the strong yen will put pressure on
the export sector.
The picture in Latin America has brightened significantly over the past
year. Though economic troubles have often accompanied Mexican presidential
elections (witness the 1994 peso crisis), our optimism about the 2000 election
proved well founded. Not only does the Mexican economy appear to be on healthy
footing, but Mexico's ruling party was voted out of office on July 2 (after the
end of our reporting period) for the first time in decades. The election
appeared honest and open and its result has received widespread acceptance.
President-elect Vicente Fox is a new kind of leader for Mexico, coming from
outside the traditional political hierarchy, and has a pro-free-market
orientation. In Brazil, meanwhile, an improving economy has helped keep
important fiscal reforms moving forward. Rising commodity prices have also
boosted economic prospects throughout Latin America.
<PAGE>
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Any slowdown in the
U.S. economy would
enhance the . . .
attractiveness of
international markets.
*****************************
The economic outlook in the Pacific ex-Japan is also healthy, with growth
currently strong. Economic reforms and corporate restructuring remain gradual
and incomplete, but stock valuations are attractive compared with those of
developed regions and reasonable compared with historic levels. The much
hoped-for "soft landing" in the U.S., if it happens, could boost Asian markets.
OUTLOOK
-------
We expect stable inflation and moderating economic growth in the U.S.,
while economies should remain robust overseas (with the exception of Japan). The
combination of sound fiscal policy, as reflected in the current U.S. federal
budget surplus, and effective monetary policy suggests reduced upward pressure
on interest rates in the months ahead. In our view, the most likely outcome is
that the Fed will raise interest rates once more, by a quarter point, at its
August meeting. This suggests a favorable climate for global stocks and bonds
for the remainder of the year. The outlook for steady growth stocks, small-caps,
and value stocks remains positive. Absent a recession in the U.S., corporate and
high-yield bonds should provide attractive total returns going forward, while
mortgage-backed bonds also offer solid yields. High valuations in the technology
sector are the main concern facing the U.S. market, though business fundamentals
remain outstanding in the sector.
Overseas, as in the U.S., market participation has broadened recently, with
gains more well-balanced between New and Old Economy stocks. Investors remain
highly selective, however, and we expect this to continue. Valuations remain
high -- though well off their recent peaks -- and stocks are likely to be
sensitive to new developments. The Internet sector is still evolving, and
volatility will probably remain high. We expect significantly more consolidation
to occur in the sector as the winners distance themselves from the losers in the
New Economy. In this environment, attention to company fundamentals will be
crucial. Any slowdown in the U.S. economy would enhance the relative
attractiveness of international markets.
Respectfully submitted,
/s/
Edmund M. Notzon III
President and Chairman of the Investment Advisory Committee
July 19, 2000
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<PAGE>
T. Rowe Price Spectrum Funds
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PORTFOLIO HIGHLIGHTS
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TEN LARGEST HOLDINGS
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Percent of
(Of the combined underlying funds at 6/30/00) Net Assets
6/30/00
SPECTRUM GROWTH FUND
--------------------
Vodafone Airtouch 0.7%
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Nokia 0.7
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Burr Brown 0.5
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Maxim Integrated Products 0.5
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Altera 0.5
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Analog Devices 0.4
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TotalFinaElf 0.4
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Glaxo Wellcome 0.4
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Telefonica 0.4
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Shell Transport & Trading 0.4
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Total 4.9%
TEN LARGEST HOLDINGS
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Percent of
(Of the combined underlying funds at 6/30/00) Net Assets
6/30/00
SPECTRUM INTERNATIONAL FUND
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Nokia 2.5%
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Vodafone Airtouch 2.4
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Telefonica 1.5
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TotalFinaElf 1.5
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Glaxo Wellcome 1.4
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<PAGE>
Societe Television Francaise 1.3
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Royal Bank of Scotland 1.3
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ShellTransport & Trading 1.3
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Telecom Italia Mobile 1.3
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Vivendi 1.3
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Total 15.8%
Note: Table excludes reserves.
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T. Rowe Price Spectrum Funds
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PORTFOLIO HIGHLIGHTS
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KEY STATISTICS
-------------- 12/31/99 6/30/00
SPECTRUM INCOME FUND
--------------------
Price Per Share $ 10.71 $ 10.58
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Dividends Per Share
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For 6 months 0.35 0.35
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For 12 months 0.69 0.70
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Dividend Yield *
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For 6 months 6.51% 6.71%
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For 12 months 6.62 6.75
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30-Day Standardized Yield 6.69% 7.09%
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Weighted Average Maturity (years)** 10.0 9.7
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Weighted Average Effective Duration (years)** 5.3 5.1
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Weighted Average Quality *** AA- AA-
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* Dividends earned and reinvested for the periods indicated are annualized
and divided by the fund's net asset value per share at the end of the
period.
** Excludes Equity Income Fund.
*** Based on T. Rowe Price research; excludes Equity Income Fund.
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<PAGE>
T. Rowe Price Spectrum Funds
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PORTFOLIO HIGHLIGHTS
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TARGET ALLOCATIONS FOR UNDERLYING FUNDS
---------------------------------------
Minimum- Target at Target at
Maximum 12/31/99 6/30/00
SPECTRUM GROWTH FUND
--------------------
International Stock 10-25% 25.0% 25.0%
-------------------------------------------------------------------------------
New Horizons 10-25 21.0 23.0
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Growth & Income 7.5-22.5 14.0 13.0
-------------------------------------------------------------------------------
Equity Income 7.5-22.5 14.0 13.0
-------------------------------------------------------------------------------
Growth Stock 5-20 10.0 10.0
-------------------------------------------------------------------------------
Blue Chip Growth 5-20 9.5 9.5
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Mid-Cap Value 0-15 4.0 4.0
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New Era 0-15 2.5 2.5
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SPECTRUM INCOME FUND
--------------------
New Income 15-30 27.0 25.5
-------------------------------------------------------------------------------
High Yield 10-25 21.0 21.5
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GNMA 5-20 17.0 17.0
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InternationalBond 5-20 12.5 13.0
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Equity Income 10-25 11.0 12.0
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U.S. Treasury Long-Term 0-15 8.0 7.5
-------------------------------------------------------------------------------
Emerging Markets Bond 0-10 3.5 3.5
-------------------------------------------------------------------------------
Short-Term Bond 0-15 0.0 0.0
-------------------------------------------------------------------------------
Summit Cash Reserves 0-25 0.0 0.0
-------------------------------------------------------------------------------
<PAGE>
SPECTRUM INTERNATIONAL FUND
---------------------------
International Stock 35-65 50.0 48.0
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European Stock 0-30 29.5 29.0
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Japan0-30 6.5 6.5
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Emerging Markets Bond 0-15 5.0 5.0
-------------------------------------------------------------------------------
Emerging Markets Stock 0-20 4.3 4.3
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International Discovery 0-20 3.0 3.0
-------------------------------------------------------------------------------
New Asia 0-20 1.7 2.7
-------------------------------------------------------------------------------
Latin America 0-15 0.0 1.5
-------------------------------------------------------------------------------
International Bond 0-20 0.0 0.0
-------------------------------------------------------------------------------
Summit Cash Reserves 0-25 0.0 0.0
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T. Rowe Price Spectrum Funds
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PERFORMANCE COMPARISON
----------------------
These charts show the value of a hypothetical $10,000 investment in each
fund over the past 10 fiscal year periods or since inception (for funds lacking
10-year records). The result is compared with benchmarks, which may include a
broad-based market index and a peer group average or index. Market indexes do
not include expenses, which are deducted from fund returns as well as mutual
fund averages and indexes.
Lipper Multi-Cap Core Spectrum Growth
S&P 500 Stock Index Fund Index Fund
------------------- ---------- ----
6/90 10000 10000 10000
6/91 10739 10608 10311
6/92 12180 12005 11466
6/93 13840 14014 13449
6/94 14034 14452 14614
6/95 17694 17450 17542
6/96 22294 21590 21918
6/97 30030 27360 26734
6/98 39088 34170 31263
6/99 47983 39358 35024
6/00 51459 44689 40307
<PAGE>
Salomon Smith Barney Broad Lipper General Bond Spectrum
Investment grade index Funds Average International Fund
---------------------- ------------- ------------------
6/90 10000 10000 10000
6/91 11085 10919 11074
6/92 12657 12729 12784
6/93 14172 14461 14255
6/94 14005 14788 14372
6/95 15761 16329 16288
6/96 16544 17509 17605
6/97 17894 19401 19702
6/98 19789 21479 21913
6/99 20407 22028 22482
6/00 21326 22571 22957
90% MSCI EAFE/10% J.P. Morgan
Non-U.S. Dollar Government Lipper International Spectrum
Bond Index Funds Average International Fund
---------- ------------- ------------------
12/96 10000 10000 10000
6/97 10981 11266 11120
6/98 11650 12254 11273
6/99 12562 12794 12305
6/00 14550 15941 15626
AVERAGE ANNUAL COMPOUND TOTAL RETURN
------------------------------------
This table shows how each fund would have performed each year if its actual
(or cumulative) returns for the periods shown had been earned at a constant
rate.
Since Inception
Periods Ended 6/30/00 1 Year 5 Years 10 Years Inception Date
--------------------- ------ ------- -------- --------- ---------
Spectrum Growth Fund 15.08% 18.10% 14.96% - 6/29/90
Spectrum Income Fund 2.11 7.10 8.67 - 6/29/90
Spectrum International Fund 26.98 - - 13.62% 12/31/96
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original purchase.
================================================================================
<PAGE>
T. Rowe Price Spectrum Growth Fund
----------------------------------
Unaudited For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
--------------------
6 Months Year
Ended Ended
6/30/00 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
NET ASSET VALUE
Beginning of period $17.71 $ 16.45 $ 15.93 $ 15.13 $ 13.49 $ 11.13
--------------------------------------------------------------------------------
Investment activities
Net investment
income (loss) 0.04 0.15 0.19 0.20 0.20 0.21
Net realized and
unrealized gain (loss) 0.60 3.19 1.88 2.40 2.57 3.12
--------------------------------------------------------------------------------
Total from
investment activities 0.64 3.34 2.07 2.60 2.77 3.33
--------------------------------------------------------------------------------
Distributions
Net investment income - (0.17) (0.18) (0.20) (0.20) (0.21)
Net realized gain - (1.91) (1.37) (1.60) (0.93) (0.76)
--------------------------------------------------------------------------------
Total distributions - (2.08) (1.55) (1.80) (1.13) (0.97)
--------------------------------------------------------------------------------
NET ASSET VALUE
End of period $18.35 $ 17.71 $ 16.45 $ 15.93 $ 15.13 $ 13.49
RATIOS/SUPPLEMENTAL DATA
Total return** 3.61% 21.20% 13.62% 17.40% 20.53% 29.96%
--------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 0.00%*+ 0.00% 0.00% 0.00% 0.00% 0.00%
--------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets 0.45%+ 0.85% 1.09% 1.26% 1.58% 1.81%
--------------------------------------------------------------------------------
Portfolio turnover rate 9.4%+ 20.3% 17.9% 20.4% 2.9% 7.4%
--------------------------------------------------------------------------------
Net assets, end of
period (in millions) $ 3,080 $ 3,031 $ 2,768 $ 2,605 $ 2,104 $ 1,358
--------------------------------------------------------------------------------
** Total return reflects the rate that an investor would have earned on an
investment in the fund during each period, assuming reinvestment of all
distributions.
* See Note 3. The annualized weighted average expense ratio of the underlying
funds was 0.84% for the period ended June 30, 2000.
+ Annualized
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Spectrum Income Fund
----------------------------------
Unaudited For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
--------------------
6 Months Year
Ended Ended
6/30/00 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
NET ASSET VALUE
Beginning of period $ 10.71 $ 11.50 $ 11.66 $ 11.20 $ 11.24 $ 10.11
--------------------------------------------------------------------------------
Investment activities
Net investment
income (loss) 0.35 0.67 0.72 0.71 0. 71 0.72
Net realized and
unrealized gain (loss) (0.13) (0.64) 0.02 0.61 0.11 1.16
--------------------------------------------------------------------------------
Total from
investment activities 0.22 0.03 0.74 1.32 0.82 1.88
--------------------------------------------------------------------------------
Distributions
Net investment income (0.35) (0.69) (0.72) (0.71) (0.71) (0.72)
Net realized gain - (0.13) (0.18) (0.15) (0.15) (0.03)
--------------------------------------------------------------------------------
Total distributions (0.35) (0.82) (0.90) (0.86) (0.86) (0.75)
--------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 10.58 $ 10.71 $ 11.50 $ 11.66 $ 11.20 $ 11.24
RATIOS/SUPPLEMENTAL DATA
Total return ** 2.10% 0.26% 6.57% 12.18% 7.64% 19.41%
--------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 0.00%*+ 0.00% 0.00% 0.00% 0.00% 0.00%
--------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets 6.63%+ 5.95% 6.22% 6.21% 6.46% 6.43%
--------------------------------------------------------------------------------
Portfolio turnover rate 19.6%+ 18.6% 12.8% 14.1% 17.6% 20.2%
--------------------------------------------------------------------------------
Net assets, end of
period (in millions) $ 2,379 $ 2,548 $ 2,574 $ 2,022 $ 1,356 $ 987
--------------------------------------------------------------------------------
** Total return reflects the rate that an investor would have earned on an
investment in the fund during each period, assuming reinvestment of all
distributions.
* See Note 3. The annualized weighted average expense ratio of the underlying
funds was 0.78% for the period ended June 30, 2000.
+ Annualized
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Spectrum International Fund
-----------------------------------------
Unaudited For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
--------------------
6 Months Year 12/31/96
Ended Ended Through
6/30/00 12/31/99 12/31/98 12/31/97
NET ASSET VALUE
Beginning of period $ 13.53 $ 10.56 $ 9.74 $ 10.00
--------------------------------------------------------------------------------
Investment activities
Net investment income (loss) 0.03 0.12 0.21 0.15
Net realized and
unrealized gain (loss) (0.38) 3.95 0.97 0.09ss.
--------------------------------------------------------------------------------
Total from investment
activities (0.35) 4.07 1.18 0.24
--------------------------------------------------------------------------------
Distributions
Net investment income - (0.13) (0.21) (0.15)
Net realized gain - (0.97) (0.15) (0.35)
--------------------------------------------------------------------------------
Total distributions - (1.10) (0.36) (0.50)
--------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 13.18 $ 13.53 $ 10.56 $ 9.74
RATIOS/SUPPLEMENTAL DATA
Total return** (2.59%) 39.49% 12.28% 2.42%
--------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 0.00%*+ 0.00% 0.00% 0.00%
--------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets 0.48%+ 1.14% 1.94% 2.23%
--------------------------------------------------------------------------------
Portfolio turnover rate 31.5%+ 20.1% 31.7% 20.0%
--------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $ 102,469 $ 82,846 $ 54,752 $ 51,050
--------------------------------------------------------------------------------
** Total return reflects the rate that an investor would have earned on an
investment in the fund during each period, assuming reinvestment of all
distributions.
* See Note 3. The annualized weighted average expense ratio of the underlying
funds was 0.98% for the period ended June 30, 2000.
ss. The amount presented is calculated pursuant to a methodology prescribed by
the Securities and Exchange Commission for a share outstanding throughout
the period. This amount is inconsistent with the Fund's aggregate gains and
losses because of the timing of sales and redemptions of Fund shares in
relation to fluctuating market values for the investment portfolio.
+ Annualized
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Spectrum Growth Fund
----------------------------------
Unaudited June 30, 2000
STATEMENT OF NET ASSETS
----------------------- In thousands
Percent of
Net Assets Shares Value
---------- ------ -----
T. Rowe Price International Stock Fund 24.3% 40,947,722 $ 748,115
-------------------------------------------------------------------------------
T. Rowe Price New Horizons Fund 23.9 24,163,894 735,307
-------------------------------------------------------------------------------
T. Rowe Price Growth & Income Fund 13.2 16,171,593 405,745
-------------------------------------------------------------------------------
T. Rowe Price Equity Income Fund 12.6 16,763,390 388,073
-------------------------------------------------------------------------------
T. Rowe Price Growth Stock Fund 10.0 8,566,499 308,223
-------------------------------------------------------------------------------
T. Rowe Price Blue Chip Growth Fund 9.4 7,440,725 288,998
-------------------------------------------------------------------------------
T. Rowe Price Mid-Cap Value Fund 4.0 9,100,229 124,855
-------------------------------------------------------------------------------
T. Rowe Price New Era Fund 2.6 3,518,004 80,914
-------------------------------------------------------------------------------
Total Investments
100.0% of Net Assets (Cost $2,202,599) $ 3,080,230
Other Assets Less Liabilities 51
NET ASSETS $ 3,080,281
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 6,085
Accumulated net realized gain/loss - net of distributions 47,932
Net unrealized gain (loss) 877,631
Paid-in-capital applicable to 167,903,915 shares of $0.01
par value capital stock outstanding; 1,000,000,000 shares of
the Corporation authorized 2,148,633
NET ASSETS $ 3,080,281
NET ASSET VALUE PER SHARE $ 18.35
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Spectrum Income Fund
----------------------------------
Unaudited June 30, 2000
STATEMENT OF NET ASSETS
----------------------- In thousands
Percent of
Net Assets Shares Value
---------- ------ -----
T. Rowe Price New Income Fund 25.3% 73,812,931 $ 603,052
--------------------------------------------------------------------------------
T. Rowe Price High Yield Fund 21.7 68,127,124 515,722
--------------------------------------------------------------------------------
T. Rowe Price GNMA Fund 17.7 46,603,103 420,826
--------------------------------------------------------------------------------
T. Rowe Price International Bond Fund 13.0 35,749,221 309,589
--------------------------------------------------------------------------------
T. Rowe Price Equity Income Fund 11.1 11,359,742 262,978
--------------------------------------------------------------------------------
T. Rowe Price U.S. Treasury Long-Term Fund 7.5 16,608,021 178,370
--------------------------------------------------------------------------------
T. Rowe Price Emerging Markets Bond Fund 3.8 8,659,084 90,141
-------------------------------------------------------------------------------
Total Investments
100.1% of Net Assets (Cost $2,494,095) $2,380,678
Other Assets Less Liabilities (1,214)
NET ASSETS $2,379,464
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 62
Accumulated net realized gain/loss - net of distributions (27,687)
Net unrealized gain (loss) (113,417)
Paid-in-capital applicable to 224,943,790 shares of $0.01
par value capital stock outstanding; 1,000,000,000 shares of
the Corporation authorized 2,520,506
NET ASSETS $2,379,464
NET ASSET VALUE PER SHARE $ 10.58
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Spectrum International Fund
-----------------------------------------
Unaudited June 30, 2000
STATEMENT OF NET ASSETS
----------------------- In thousands
Percent of
Net Assets Shares Value
---------- ------ -----
T. Rowe Price International Stock Fund 47.2% 2,647,513 $ 48,370
-------------------------------------------------------------------------------
T. Rowe Price European Stock Fund 28.8 1,255,829 29,487
-------------------------------------------------------------------------------
T. Rowe Price Japan Fund 6.5 474,111 6,685
-------------------------------------------------------------------------------
T. Rowe Price Emerging Markets Bond Fund 4.9 478,908 4,985
-------------------------------------------------------------------------------
T. Rowe Price Emerging Markets Stock Fund 4.2 286,654 4,346
-------------------------------------------------------------------------------
T. Rowe Price International Discovery Fund 3.3 85,745 3,408
-------------------------------------------------------------------------------
T. Rowe Price New Asia Fund 2.8 309,755 2,884
-------------------------------------------------------------------------------
T. Rowe Price Latin America Fund 2.3 210,085 2,307
-------------------------------------------------------------------------------
Total Investments
100.0% of Net Assets (Cost $90,577) $ 102,472
Other Assets Less Liabilities (3)
NET ASSETS $ 102,469
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 211
Accumulated net realized gain/loss - net of distributions 3,080
Net unrealized gain (loss) 11,895
Paid-in-capital applicable to 7,772,464 shares of $0.01
par value capital stock outstanding; 1,000,000,000 shares of
the Corporation authorized 87,283
NET ASSETS $ 102,469
NET ASSET VALUE PER SHARE $ 13.18
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Spectrum Funds
----------------------------
Unaudited
STATEMENT OF OPERATIONS
----------------------- In thousands
Growth Income International
Fund Fund Fund
------ ------ -------------
6 Months 6 Months 6 Months
Ended Ended Ended
6/30/00 6/30/00 6/30/00
INVESTMENT INCOME
Income distributions from underlying funds $ 6,752 $ 79,204 $ 219
-------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Sale of underlying funds 22,588 (32,868) 2,886
Capital gain distributions
from underlying funds 12,866 8,826 -
-------------------------------------------------------------------------------
Net realized gain (loss) 35,454 (24,042) 2,886
Change in net unrealized gain or loss 63,870 (7,704) (5,322)
-------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 99,324 (31,746) (2,436)
-------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 106,076 $ 47,458 $ (2,217)
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Spectrum Growth Fund
----------------------------------
Unaudited
STATEMENT OF CHANGES IN NET ASSETS
---------------------------------- In thousands
6 Months Year
Ended Ended
6/30/00 12/31/99
Increase (Decrease) in Net Assets
Operations
Investment income $ 6,752 $ 23,136
Net realized gain (loss) 35,454 292,276
Change in net unrealized gain or loss 63,870 227,805
-------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 106,076 543,217
-------------------------------------------------------------------------------
Distributions to shareholders
Investment income - (26,073)
Net realized gain - (293,035)
-------------------------------------------------------------------------------
Decrease in net assets from distributions - (319,108)
-------------------------------------------------------------------------------
Capital share transactions *
Shares sold 285,075 398,895
Distributions reinvested - 310,958
Shares redeemed (341,820) (671,253)
-------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions (56,745) 38,600
-------------------------------------------------------------------------------
Net Assets
Increase (decrease) during period 49,331 262,709
Beginning of period 3,030,950 2,768,241
-------------------------------------------------------------------------------
End of period $ 3,080,281 $ 3,030,950
*Share information
Shares sold 16,051 23,383
Distributions reinvested - 18,800
Shares redeemed (19,296) (39,287)
-------------------------------------------------------------------------------
Increase (decrease) in shares outstanding (3,245) 2,896
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Spectrum Income Fund
----------------------------------
Unaudited
STATEMENT OF CHANGES IN NET ASSETS
---------------------------------- In thousands
6 Months Year
Ended Ended
6/30/00 12/31/99
Increase (Decrease) in Net Assets
Operations
Investment income $ 79,204 $ 153,382
Net realized gain (loss) (24,042) 27,911
Change in net unrealized gain or loss (7,704) (174,105)
-------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 47,458 7,188
-------------------------------------------------------------------------------
Distributions to shareholders
Investment income (79,204) (158,379)
Net realized gain - (30,463)
-------------------------------------------------------------------------------
Decrease in net assets from distributions (79,204) (188,842)
-------------------------------------------------------------------------------
Capital share transactions *
Shares sold 269,941 793,286
Distributions reinvested 72,532 175,415
Shares redeemed (479,698) (812,665)
-------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions (137,225) 156,036
-------------------------------------------------------------------------------
Net Assets
Increase (decrease) during period (168,971) (25,618)
Beginning of period 2,548,435 2,574,053
-------------------------------------------------------------------------------
End of period $ 2,379,464 $ 2,548,435
*Share information
Shares sold 25,518 71,118
Distributions reinvested 6,869 15,876
Shares redeemed (45,381) (72,904)
-------------------------------------------------------------------------------
Increase (decrease) in shares outstanding (12,994) 14,090
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Spectrum International Fund
-----------------------------------------
Unaudited
STATEMENT OF CHANGES IN NET ASSETS
---------------------------------- In thousands
6 Months Year
Ended Ended
6/30/00 12/31/99
Increase (Decrease) in Net Assets
Operations
Investment income $ 219 $ 681
Net realized gain (loss) 2,886 5,241
Change in net unrealized gain or loss (5,322) 16,447
------------------------------------------------------------------------------
Increase (decrease) in net assets from operations (2,217) 22,369
------------------------------------------------------------------------------
Distributions to shareholders
Investment income - (718)
Net realized gain - (5,358)
------------------------------------------------------------------------------
Decrease in net assets from distributions - (6,076)
------------------------------------------------------------------------------
Capital share transactions *
Shares sold 45,049 20,507
Distributions reinvested - 5,761
Shares redeemed (23,209) (14,467)
------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions 21,840 11,801
------------------------------------------------------------------------------
Net Assets
Increase (decrease) during period 19,623 28,094
Beginning of period 82,846 54,752
------------------------------------------------------------------------------
End of period $ 102,469 $ 82,846
*Share information
Shares sold 3,397 1,754
Distributions reinvested - 465
Shares redeemed (1,749) (1,280)
------------------------------------------------------------------------------
Increase (decrease) in shares outstanding 1,648 939
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Spectrum Funds
----------------------------
Unaudited June 30, 2000
NOTES TO FINANCIAL STATEMENTS
-----------------------------
T. Rowe Price Spectrum Fund, Inc. (the corporation) is registered under the
Investment Company Act of 1940 (the Act) as a nondiversified, open-end
management investment company. Spectrum Growth Fund, Spectrum Income Fund, and
Spectrum International Fund (collectively, the Spectrum Funds), are the three
portfolios established by the corporation. Operations commenced on June 29, 1990
for Spectrum Growth and Spectrum Income Funds, and on December 31, 1996 for
Spectrum International Fund.
Each Spectrum Fund diversifies its assets within set limits among specific
underlying T. Rowe Price funds (underlying funds). Spectrum Growth Fund
principally seeks long-term capital appreciation and growth of income by
allocating its assets to underlying funds that invest primarily in stocks.
Spectrum Income Fund strives to provide a high level of current income with
moderate share price fluctuation, by investing in underlying funds that invest
primarily in fixed income securities. The objective of Spectrum International
Fund is to provide long-term capital appreciation through allocations to
underlying funds that invest primarily in international stocks and, to a lesser
degree, international bonds.
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PREPARATION The financial statements are prepared in accordance
with generally accepted accounting principles for the investment company
industry, which may require the use of estimates by fund management.
VALUATION Investments in the underlying funds are valued at the closing net
asset value per share of each underlying fund on the day of valuation.
Assets for which the above valuation procedures are inappropriate or are
deemed not to reflect fair value are stated at fair value as determined in good
faith by or under the supervision of the officers of the fund, as authorized by
the Board of Directors.
DISTRIBUTIONS Income and capital gain distributions from the underlying
funds and distributions to the Spectrum Funds' shareholders are recorded on the
ex-dividend date.
Income and capital gain distributions to the Spectrum Funds' shareholders
are determined in accordance with federal income tax regulations, which may
differ from generally accepted accounting principles.
FEDERAL INCOME TAXES No provision for federal income taxes is required
since each fund intends to continue to qualify as a regulated investment company
and distribute all of its taxable income.
<PAGE>
OTHER Income is recorded on the accrual basis. Purchases and sales of the
underlying funds are accounted for on the trade date. Realized gains and losses
are reported on the identified cost basis.
NOTE 2 - INVESTMENTS IN UNDERLYING FUNDS
Purchases and sales of the underlying funds for the six months ended June
30, 2000 were as follows:
Growth Income International
Fund Fund Fund
------ ------ -------------
Purchases $ 141,206,000 $ 235,893,000 $ 36,549,000
Sales 178,239,000 363,384,000 14,482,000
At June 30, 2000, the net unrealized gain (loss) on investments in the
underlying funds for both federal income tax and financial reporting purposes
were as follows:
Growth Income International
Fund Fund Fund
------ ------ -------------
Appreciated investments $ 879,007,000 $ 31,731,000 $ 12,081,000
Depreciated investments (1,376,000) (145,148,000) (186,000)
Net unrealized gain (loss) $ 877,631,000 $(113,417,000) $ 11,895,000
NOTE 3 - RELATED PARTIES
T. Rowe Price Associates, Inc. (T. Rowe Price) is the investment manager
for Spectrum Growth and Spectrum Income Funds, and also serves as manager for
the domestic underlying funds. Rowe Price-Fleming International, Inc.
(Price-Fleming) is the investment manager for Spectrum International Fund, and
also serves as manager for the international underlying funds. T. Rowe Price and
its wholly-owned subsidiaries provide transfer and dividend disbursing agent,
accounting, shareholder, administrative, marketing, and certain other services
to the Spectrum Funds. Certain officers and directors of the Spectrum Funds are
also officers and directors of T. Rowe Price, Price-Fleming, and the underlying
funds.
The Spectrum Funds pay no management fees; however, T. Rowe Price and
Price-Fleming receive management fees from managing the underlying funds. In
addition, expenses associated with the operation of the Spectrum Funds are borne
by each underlying fund in proportion to the average daily value of its shares
owned by the Spectrum Funds, pursuant to special servicing agreements between
and among the corporation, the underlying funds, T. Rowe Price, and, in the case
of Spectrum International, Rowe-Price Fleming. Therefore, the Spectrum Funds
each operate at a zero expense ratio, although the valuations of the underlying
funds reflect management fees and other expenses incurred by the underlying
funds.
<PAGE>
The Spectrum Funds do not invest in the underlying funds for the purpose of
exercising management or control; however, investments by Spectrum within the
set limits may represent a significant portion of an underlying fund's net
assets. At June 30, 2000, Spectrum International held less than 25.0% of the
outstanding shares of any underlying fund and Spectrum Growth held approximately
52.5% of the outstanding shares of the T. Rowe Price Mid-Cap Value Fund.
Spectrum Income Fund held approximately 58.9% of the outstanding shares of the
T. Rowe Price U.S. Treasury Long-Term Fund, 53.1% of the T. Rowe Price Emerging
Markets Bond Fund, 43.7% of the T. Rowe Price International Bond Fund, 39.9% of
the T. Rowe Price GNMA Fund, 36.3% of the T. Rowe Price New Income Fund, and
33.0% of the T. Rowe Price High Yield Fund.
================================================================================
T. Rowe Price Shareholder Services
----------------------------------
INVESTMENT SERVICES AND INFORMATION
KNOWLEDGEABLE SERVICE REPRESENTATIVES
-------------------------------------
BY PHONE 1-800-225-5132 Available Monday through Friday from
8 a.m. to 10 p.m. ET and weekends from 8:30 a.m. to 5 p.m. ET.
IN PERSON Available in T. Rowe Price Investor Centers.
ACCOUNT SERVICES
----------------
CHECKING Available on most fixed-income funds ($500 minimum).
AUTOMATIC INVESTING From your bank account or paycheck.
AUTOMATIC WITHDRAWAL Scheduled, automatic redemptions.
DISTRIBUTION OPTIONS Reinvest all, some, or none of your distributions.
AUTOMATED 24-HOUR SERVICES Including Tele*AccessRegistration Mark and the
T. Rowe Price Web site on the Internet. Address: www.troweprice.com
BROKERAGE SERVICES*
-------------------
Individual Investments Stocks, bonds, options, precious metals,
and other securities at a savings over full-service commission rates. **
INVESTMENT INFORMATION
----------------------
COMBINED STATEMENT Overview of all your accounts with T. Rowe Price.
SHAREHOLDER REPORTS Fund managers' reviews of their strategies and results.
<PAGE>
T. ROWE PRICE REPORT Quarterly investment newsletter discussing
markets and financial strategies.
PERFORMANCE UPDATE Quarterly review of all T. Rowe Price fund results.
INSIGHTS Educational reports on investment strategies and financial markets.
INVESTMENT GUIDES Asset Mix Worksheet, College Planning Kit,
Diversifying Overseas: A Guide to International Investing, Personal
Strategy Planner, Retirees Financial Guide, and Retirement Planning Kit.
* T. Rowe Price Brokerage is a division of T. Rowe Price Investment
Services, Inc., Member NASD/SIPC.
** Based on a July 2000 survey for representative-assisted stock trades.
Services vary by firm, and commissions may vary depending on size of
order.
================================================================================
FOR FUND AND ACCOUNT INFORMATION
OR TO CONDUCT TRANSACTIONS,
24 HOURS, 7 DAYS A WEEK
By touch-tone telephone
TELE*ACCESS 1-800-638-2587
By Account Access on the Internet
WWW.TROWEPRICE.COM/ACCESS
FOR ASSISTANCE
WITH YOUR EXISTING
FUND ACCOUNT, CALL:
Shareholder Service Center
1-800-225-5132
TO OPEN A BROKERAGE ACCOUNT
OR OBTAIN INFORMATION, CALL:
1-800-638-5660
INTERNET ADDRESS:
www.troweprice.com
PLAN ACCOUNT LINES FOR RETIREMENT
PLAN PARTICIPANTS:
The appropriate 800 number appears
on your retirement account statement.
T. Rowe Price Associates
100 East Pratt Street
Baltimore, Maryland 21202
<PAGE>
This report is authorized for
distribution only to shareholders
and to others who have received
a copy of the prospectus appropriate
to the fund or funds covered in this
report.
WALK-IN INVESTOR CENTERS:
For directions, call 1-800-225-5132
or visit our Web site
BALTIMORE AREA
DOWNTOWN
101 East Lombard Street
OWINGS MILLS
Three Financial Center
4515 Painters Mill Road
BOSTON AREA
386 Washington Street
Wellesley
COLORADO SPRINGS
4410 ArrowsWest Drive
LOS ANGELES AREA
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills
TAMPA
4200 West Cypress Street
10th Floor
WASHINGTON, D.C.
900 17th Street N.W.
Farragut Square
T. Rowe Price Investment Services, Inc., Distributor. C08-051 6/30/00
